Queensland Drop in Industry Confidence

Queensland’s property industry has followed a worrying national trend, as industry confidence has fallen from 140 index points in September 2018 to 128 index points this quarter, according to the latest ANZ/Property Council Survey.

For the first time in four years all states have witnessed a significant drop in industry confidence, with the overall national confidence declining by 12 index points this quarter.

Property Council’s Queensland Executive Director, Chris Mountford, says the fall in sentiment can be attributed to concerns over increasing interest rates and a national tightening of finance availability.

“As concerns over the cost and availability of finance persist, it is important to remember Queensland is not immune to these wider issues. Now more than ever, it is essential for the Government to step up and support the property industry,” Mr Mountford says.

“Survey results showed that national economic growth expectations have fallen by 11 index points, entering into negative territory for the first time in three years. Debt finance availability has also witnessed a decline in sentiment across the board, with Queensland dropping to -23 index points (with 100 being neutral).”

“The results show that significant concern remains both nationally and on a state level. In Queensland, the industry has experienced a period of change and uncertainty over the previous 12 months, with increases to land tax and a more than doubling of Additional Foreign Acquirer Duty (AFAD),” said Mr Mountford.

“The dramatic tax increases, imposed on an industry that already pays 53.7% of Queensland taxes, is certainly a factor holding back stronger gains in sentiment. It is imperative that the Government supports the sector in the face of more challenging market conditions.”

“In order for industry confidence to increase across the board, there needs to be a greater focus from the State Government on actions that unlock activity and build confidence to help restore the sector’s confidence. Meaningful tax reform needs to be on the agenda, as does action to unlock underutilised government land holdings.” explained Mr Mountford.